Kim Nam-kuk, a South Korean lawyer and politician, is set to sell off his cryptocurrency holdings following allegations of a conflict of interest. The Democratic party, of which he is a member, will also carry out an investigation to determine whether or not he followed local regulations when acquiring the tokens.
Inspection Could Reach Other Members of the Party
A local media outlet reported that the DP has urged Nam-kuk to sell his approximately 800,000 Wemix coins amid allegations that he may have used insider information to acquire them and may not have followed domestic rules when dealing with them a few years ago.
The investigation will initially focus on Nam-kuk, but could extend to other members of the DP. “Outside experts with specialist knowledge could join the investigation if necessary, because coins involve things hard for ordinary people to understand,” said spokesperson Kwon Chil-seung. Nam-kuk, who confirmed he will sell his stash, which is worth around $700,000, said, “I received the recommendation from the party to sell my crypto assets. I will faithfully implement the recommendation. I will transparently disclose data to the investigation team and undergo the inquiry faithfully.”
Nam-kuk is believed to have withdrawn the coins before March 2022, ahead of legislation that requires crypto entities to report personal data when transferring more than 1 million won ($758). He was also involved in a bill proposing a delay of income taxation on digital assets several months before withdrawing his Wemix tokens.
Crypto Taxation Coming in 2025
South Korea’s authorities plan to introduce a 20% levy on cryptocurrency trading gains from 2022. People with profits of less than $42,000 per annum will be excluded from taxation. The opposition People Power Party has proposed a one-year delay, arguing that the country has not designed an appropriate plan for the taxation procedure. The Democratic Party has also tried to postpone the bill and stated that an adequate taxation infrastructure has not been prepared. Eventually, the Korean government has postponed the rule until 2025. It will apply to every local whose crypto profits exceed $1,900 per year.
